RON JOHNSON WISCONSIN ttnitcd ~tatcs ~cnatc The Honorable Tom Wheeler Chairman Federal Communications Commission 445 12th Street, SW Washington, DC 20554 Dear Chairman Wheeler: WASHINGTON, OC 20510 May 8, 2014 Rk:'•.'ed & Inspected j·,, ' ' ' 2 201. FCC Ma,i Room COMMITTEES: BUDGET COMMERCE, SCIENCE AND TRANSPORTATION FOREIGN RELATIONS HOMELAND SECURITY AND GOVERNMENTAL AFFAIRS SMALL BUSINESS AND ENTREPRENEURSHIP I write today as a follow-up to a letter I signed earlier this week with forty-three of my Senate colleagues regarding the Federal Communications Commission (FCC) and its reforms to the Universal Service Fund (USF). I support the policy outlined in the letter that would allow rural rate-of-return carriers to receive USF support for broadband-only subscribers in high-cost areas of the United States, provided that this policy would not result in an increase in the USF fee that consumers are charged as a line item on their telephone bills. Since the contribution factor is assessed quarterly and based on projected demand for Universal Service funding, a policy that better reflects market demand and reduces costs associated with building out and maintaining a service that consumers increasingly no longer want should not contribute to any increase in these projections. In 2011, I was pleased to see that the FCC, for the first time, set a definitive budget for the High Cost Program. As Commissioner McDowell explained in his statement to the order, "Functionally, the budget serves as an annual cap through 2017." In encouraging the FCC to address smaller carrier support mechanisms, I fully expect the FCC to continue operating within this budget. It is my hope that such a reform will ultimately result in a savings to the High Cost Program rather than any increased spending. Thank you for the opportunity to clarify this position and I appreciate your attention to this important issue. WASHINGTON OFFICE: 328 HART SENATE OFFICE BUILDING WASHINGTON, DC 20510 (202) 224-5323 OSHKOSH OFFICE: 219 EAST WASHINGTON AVENUE, SUITE 100 OsHKOSH, WI 54901 (920) 230-7250 http://www.ronjohnson.senate.gov MILWAUKEE OFFICE: 517 EAST WISCONSIN AVENUE RooM 408 MILWAUKEE, WI 53202 (414) 276--7282